Under FASB ASC 606, When Multiple Performance Obligations Exist in a Contract

question 43

Multiple Choice

Under FASB ASC 606, when multiple performance obligations exist in a contract, they should be accounted for as a single performance obligation when

• A) Each service is interdependent and interrelated
• B) Both performance obligations are distinct but interdependent
• C) The product is distinct within the contract
• D) Determination cannot be made

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